Lake Charles Mortgage Lender
Home Loans In Lake Charles, Louisiana
Lake Charles, LA, real estate market is on the rise. However, the high demand and low inventory push home prices through the roof, making it harder for many people to buy a home. In many cases, home buyers – especially first-time home buyers – look to government-guaranteed mortgages to secure the financing they need for a home.Â
While many different home loan programs are available in Lake Charles, conventional and FHA home loans are the most popular ones.Â
Let’s go over the difference between the two home loan programs to decide which one is best for you.
Conventional vs. FHA Loans
Conventional home loans are loans that the government does not guarantee in any way or form. The lending company assumes most of the risks associated with these loans — especially if the borrower defaults on the mortgage. Because of this, the eligibility requirements for conventional loans are more stringent than that of government-backed loans.
On the other hand, FHA loans receive backing from the government through the Federal Housing Administration. Because of this support, lenders are more confident in extending credit to borrowers – even those with less-than-ideal credit histories, knowing that the government will insure the loan against future default.
Other important distinctions between these two loan options are as follows:
Down Payment
The lowest down payment possible for conventional mortgages is 3% for borrowers with impeccable credit. The standard down payment requirement for conventional loans is 5% of the sales price. On the other hand, the minimum down payment for FHA loans is 3.5 percent if your credit score is at least 580 and 10% if your credit score is 500 to 579.
Whether you choose to go for a conventional or FHA loan, we recommend maximizing your down payment (if you can) to lower your monthly mortgage payments.
Credit Score
While a conventional loan may allow you to make as little as a 3% down payment, it comes with high qualification standards, particularly credit score.
The minimum credit score you need to qualify for a conventional loan is 620, while FHA loans accept borrowers with credit scores as low as 500.
Mortgage Insurance
Conventional mortgages require borrowers to pay PMI or Private Mortgage Insurance if the down payment is less than 20%. When your balance on a conventional mortgage reaches 78 percent of the original purchase price, you may cancel the PMI off your loan.
On the other hand, FHA loan borrowers are always required to pay MIP or mortgage insurance premium, regardless of how much down payment they make.
This MIP is for the life of the loan but can be canceled if you refinance from an FHA loan to a conventional loan or ultimately pay off the mortgage.
Moreover, there are two types of mortgage insurance for FHA loans: upfront mortgage insurance (UFMIP) and mortgage insurance premium (MIP). UFMIP is 1.75 percent of the loan amount and is usually financed into the mortgage, whereas MIP as annual premiums ranges from 0.45 percent to 1.05 percent.
DTI Ratio
Most conventional lenders require borrowers to have a debt-to-income (DTI) ratio of 45 percent or less, but the limit varies by lender. For FHA loans, on the other hand, lenders may still accept DTIs as high as 50% and up to 55% with compensating factors.
The Federal Government amends the loan limits for conventional and FHA loans every year.
Loan Limits
Conforming loan limits for 2022, which apply to conventional mortgages, are $647,200 for single-unit properties in most country areas and $970,800 for high-cost areas.
For FHA loans, the nationwide loan limit for a one-unit property in 2022 is $420,680.
Lake Charles, Louisiana Mortgage Lender
Capital Home Mortgage provides conventional and FHA loans in Lake Charles and several other home loan programs like VA, USDA, and Jumbo loans. Furthermore, our home loan programs offer competitive interest rates and lower processing fees.
Capital Home Mortgage is a direct mortgage lender, which means we will handle your application from beginning to end and even finance your mortgage from our funds. You won’t have to deal with numerous third parties to find a suitable home loan in Lake Charles.
Apply For A Home Loan With Us Today!
We at Capital Home Mortgage know how time-consuming and complicated the mortgage process can be, especially if it is your first time. We’re committed to expediting the process through streamlined application-to-approval processes and flexible underwriting procedures.
Speak with one of our Lake Charles loan officers today and find the best home loan for you by calling (225) 208-7599.
Why Lake Charles Is Choosing Capital Home Mortgage...
Close On Time with True Approval
Control of the Loan from the Application to Funding.
Great Lake Charles Rates / Low Fees
Direct Mortgage Lender Providing Competitive Rates and Low Fees.
Lake Charles Customer Service
7Â Day a Week Support from Application to Final Mortgage Payment.Â
Lake Charles Mortgage Rates
Capital Home Mortgage Lake Charles is dedicated to offering Great Lake Charles Mortgage Rates.
Call now to speak with a Loan Officer or request a no obligation custom rate quote.
Have you ever wondered why interests rates are what they are and what determines the final rate? Why borrowers receive different interest rates? Or why rates go up and down? Interest Rates are calculated using several factors.
- Demand for the mortgage Securities
- Property securing the mortgage
- occupancy of the property
- Loan to value of the property
- Borrower’s credit worthiness
Lake Charles, Louisiana Mortgage Loans
Lake Charles Home Purchase
Buying A Lake Charles Home?
- Primary, 2nd, Investment
- Low Rates & Low Fees
- Conventional, FHA, VA, USDA
- Jumbo, Reno, Manufactured
Lake Charles Renovation Home Loans
Lake Charles Rehab Loans
- Remodel, Renovate, Repair
- FHA 203K Streamline or Full
- Fannie Mae Homestyle Reno
- Freddie Mac Choice Reno
Lake Charles FHA Home Loans
1st Time Lake Charles Homebuyers
- Smaller Down Payment
- Flexible Underwriting
- Higher Debt to Income Ratios
- Lower Credit Scores Allowed
Lake Charles VA Home Loans
100% Loans For Lake Charles Veterans
- Simply Qualifying
- No Down PaymentsÂ
- Lower Credit Scores Allowed
- Manual Underwriting Allowed
Lake Charles Conventional Home Loans
Flexibility for Lake Charles Buyers
- Primary, 2nd, Investment
- Great Rates & Low FeesÂ
- Single and Multi-Family
- Renovation Loan Programs
Lake Charles Jumbo Home Loans
Great Lake Charles Rates
- Primary & 2nd Homes
- Higher Amounts – 3 Million
- Great Interest Rates
- Investor Specific Guidelines
Lake Charles USDA Home Loans
Rural Lake Charles Properties
- Rural Properties Only
- Primary Residence Only
- New Manufactured Homes
- Closing Costs Can Be Rolled In
Lake Charles Native American Loans
Lake Charles HUD 184 Loans
- Primary Residence Only
- Manual Underwrite All Loans
- No Credit Score Requirements
- Tribal Grants Allowed
Lake Charles Manufactured Home Loans
Lake Charles Mobile Home Loans
- Purchase or Refinance
- New Home Purchase
- OTC Combo Land & Home
- FHA, VA, USDA, & HUD 184
Lake Charles Reverse Mortgages
Your Lake Charles Home at Work!
- Primary Residence Only
- Simple Qualifying
- Credit Scores Not Applicable
- Minimum Age 62
Lake Charles Cash-Out Refinance
Lake Charles Equity Refinance
- Reduce Mortgage Term
- Lower Monthly Payments
- Appraisal Waivers
- Streamline Options Available
Lake Charles Mortgage Refinance
Lake Charles Rate & Term Refinance
- Purchase, Refi & Cash-out
- Primary, 2nd & Investment
- Full Doc & Alt Doc Programs
- Corporations OK